ICICI Prudential Asset Management Company (AMC), India's second-largest mutual fund manager by assets, has filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The proposed IPO is structured entirely as an offer for sale (OFS) of 1.76 crore equity shares by Prudential Corporation Holdings, a subsidiary of UK-based Prudential PLC. This represents approximately 10% of ICICI Prudential AMC's equity share capital. According to Bloomberg, the offering could potentially raise ₹10,000 crore ($1.2 billion), valuing the asset manager at around $12 billion.

Offer Details

The IPO will be a complete offer for sale, meaning ICICI Prudential AMC will not receive any funds from the issue. All proceeds will go to Prudential Corporation Holdings. ICICI Prudential AMC's board has approved a bonus issue, potentially increasing the number of shares offered post-bonus to 4.94 crore. Up to 10% of the issue is reserved for eligible ICICI Bank shareholders. The shares, with a face value of ₹1 each, will be listed on both the BSE and NSE. The price band is yet to be announced.

Background and Stakeholders

ICICI Prudential AMC is a joint venture between ICICI Bank, which holds a 51% stake, and Prudential Corporation Holdings, which owns the remaining 49%. ICICI Bank has approved the acquisition of an additional 2% stake in ICICI Prudential AMC to maintain its majority shareholding, especially in light of potential stock-based compensation being granted by the AMC. Prudential had earlier announced its intention to partially divest its holding in ICICI Prudential AMC through a public listing.

Financial Performance and Market Position

In FY25, ICICI Prudential AMC reported a 29.3% year-on-year increase in net profit to ₹2,650.7 crore, while revenue jumped 38.7% to ₹4,682.8 crore. The company's assets under management (AUM) have grown to ₹9.01 lakh crore. As of March 2025, ICICI Prudential AMC held a 13% market share in quarterly average assets under management (QAAUM), serving a customer base of 14.6 million across India. The company offers 133 schemes across equity, debt, and alternative investments.

Strategic Implications

The IPO is viewed as a strategic move by both Prudential and ICICI Bank. For Prudential, the stake sale aligns with its global strategy to return capital to shareholders while remaining committed to India's growth. For ICICI Bank, increasing its stake ensures the bank retains its decision-making power and maintains majority control of the AMC.

Merchant Bankers

A total of 18 merchant bankers have been appointed to manage the IPO, including Citigroup, Morgan Stanley, BofA Securities, Axis Capital, and ICICI Securities.